At a service company, the indirect costs of serving the client include manufacturing overhead.

Name: At a service company, the indirect costs of serving the client include manufacturing overhead.
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

Manufacturing overhead is not a relevant cost in a service company as they do not manufacture any products. Instead, service companies have other indirect costs such as rent, utilities, and administrative expenses.

At a Service Company, the Indirect Costs of Serving the Client